The drill bit is turning at Kula Gold’s (ASX: KGD) 100 per cent-owned Marvel Loch project near the Western Australian Wheatbelt town of Southern Cross as the company’s hunt for gold and rare earths intensifies.
The target – a magnetic low feature dubbed Boomerang – shares the same strike orientation as big gold deposits nearby and a Kula drill hit going 2.56g/t gold in ultrafines.
The company says historic drilling in the tenement has also offered a sniff of clay-hosted rare earth potential, giving rise to its new round of drill samples being assayed for the elements critical to the clean energy revolution in addition to gold.
Interestingly, Boomerang already hosts a kaolin resource of 93.3 million tonnes.
But gold is the focus for Kula and with good reason as Boomerang is nestled between some gold monsters – the 600,000-ounce Nevoria mine, the 2.4 million-ounce Marvel Loch mine and the 150,000-ounce Mt Palmer mine.
Notably, Kula says all those mines produced gold at a grade of more than 4 grams per tonne. The company’s reverse-circulation (RC) drilling at Boomerang threw up a 1m-thick chunk grading 2.56g/t gold from 54m, giving confidence to the idea of mineable grades at the prospect.
This reconnaissance RC drilling is a limited metreage program to test the gold UFF geochemistry anomaly following up a 1m at 2.56g/t intercept from previous drilling in the Boomerang Kaolin Deposit, as well as possible rare earths potential. Kula Gold managing director Ric Dawson.
Kula Gold managing director Ric Dawson.
The company says Boomerang already has a set of ultrafine soil samples that stretched the gold anomaly to more than 200m in length. The prospect sits within an area of productivity that is home to a cluster of prospects on Kula’s books – namely Stingray, Crayfish, Nevoria North, G-Star and 311.
Earlier this year, a soil sampling program testing for gold coincident with a circular magnetic feature about 2km to 3km in length and 1km wide defined the Stingray prospect. The company says the best of the soil gold hits were 56.7 parts per billion, 49.9ppb and 42.3ppb, with 10 of the samples going more than 25ppb gold.
Last month, Kula made headlines with a rock chip grading a head-turning 11.2g/t gold and others going 3.4g/t and 3.3g/t from its Brunswick project in WA’s South West region. The area has been the focus of historic mining and boasts whopping gold grades as high as 130g/t and 32.7g/t.
Certainly, if there is gold and rare earths at Boomerang, Kula appears set to find it. With a plethora of gold infrastructure nearby and just 27km to the historic mining mecca of Southern Cross, the company is certainly in the gold postcode.
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